Yesterday, the House once again passed the Credit Union Board Modernization Act, which aims to alter board meeting requirements set out for credit unions in the Federal Credit Union Act—requiring only six board meetings per year in lieu of the now standard monthly requirement. Supporters of the bill claim that the current requirements are often too taxing on credit unions, especially smaller credit unions, which extend a great number of time and resources prepping for the meetings. Dropping to bi-monthly meetings would free up resources for critical credit union operations and improved member service.

The bipartisan legislation had previously been passed by the House in 2023 and sent on to the Senate, where it was expected to swiftly succeed thanks to the overwhelming support the bill received. However, the Senate passed the bill onto the Committee on Banking, Housing, and Urban Affairs, where it remained stagnant for the last two years. To bring the bill back to the forefront of conversation, Representative Juan Vargas (D) of California and Bill Huizenga (R) of Michigan reintroduced the legislation earlier this month.

America’s Credit Unions has long since been a staunch advocate of the “commonsense” bill, heavily campaigning for it both times by writing letters to Congress and garnering support from state credit union leagues.

In response to its passing, Carrie Hunt, Chief Advocacy Officer of America’s Credit Unions wrote, “By passing the bipartisan Credit Union Board Modernization Act, the House brings credit unions one step closer in achieving this much-needed flexibility. This legislation would help free up resources so credit unions can do even more to better serve their members and the community at large. Thank you to Representatives Juan Vargas (D-CA) and Bill Huizenga (R-MI) for introducing the bill and helping usher it through the House. We look forward to moving this issue in the Senate next to further strengthen credit unions and help the people they serve with this needed, common sense change.”

State credit union leagues likewise have continued their support for the bill upon its reintroduction. Michigan Credit Union League President/CEO Patty Corkery wrote, “The reintroduction of the Credit Union Board Modernization Act is significant for credit unions and their members. By reducing unnecessary regulatory burdens, this common-sense legislation will empower credit unions to dedicate more time and resources to serving their communities. MCUL is grateful to Rep. Bill Huizenga for his leadership and to our Michigan credit union advocates, who continue to work toward making the passing of this act a reality. We’re pleased to see this progress, which is a testament to the collaborative relationship credit unions have built with many of our lawmakers.”

While such support bolsters the visibility of the bill, the Credit Union Board Modernization Act had over 100 co-sponsors when it was first introduced, and such backing did not prevent the bill’s slow death. It is very clear that the real issue here is not a lack of belief in the bill nor political opponents pushing against its passing, but government inaction, which can often be the most difficult hurdle to overcome. The challenge for these agencies then is to spur the Senate into action and ensure the legislation doesn’t reach the same fate this time around.

Despite the bill’s passionate advocates, it’s possible the Senate repeats history. However, this administration has been keen on swift action thus far, which could mean good news for the legislation.